Ray From Cleveland
Diamond Member
- Aug 16, 2015
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I grew up near NYCWhat drives the price of homes in blue states vs red is supply and demandAre you advocating that our workforce should work for pennies?
No, simply stating the fact that we priced ourselves out of the world market. Remember the more money people make, the more it costs to buy things. So when we make more money, we increase the cost of living.
You don't have to compare years for this, you can find it right here in the US. There are places where you get more for your money than other places--mostly blue states.
I like to watch HGTV. I'm amazed at the house prices in some of these liberal states. What you can buy here for around 250K is comparable to what you can buy for 900K in other places. For 900K, you're lucky to have a home with a garage and a backyard more than 70 feet. Look at what you can buy in a place like Montana for 900K. It's virtually a sky lodge.
Bottom line is if we made less money and stayed closer to what people make in other countries, we wouldn't be living with that much less because everything we buy would be cheaper.
There is not a huge market for those isolated homes in red states
No, it's the cost because Democrats have given strong support to unions and high taxation. Now you might be able to say that about California where the weather is a real draw, but you can't say that about the northeast states. The only global warming they experience is in the summer time.
There are exceptions like New York city perhaps, but I had a tenant move here from Buffalo. He told me he would be paying three times the rent I was charging him if my places were in his state, and especially anywhere near New York city. He was a very young guy who came here to go to school. He was astonished at our prices for gasoline, food, alcohol and cigarettes.
The homes cost a lot because the jobs pay so well
Isn't it a little of both? Cities charge high rent and taxes because they assume you can afford it, and the property is in high demand because of the jobs.
Partly correct. When the cost of living is up, so are taxes. Most landlords pay the property tax, so we have to charge higher rents for our rental units. Same holds true when we need to hire professionals for a job such as plumbing or electrical. They make much more over there so that dips into their rental income and they need to pass the costs.